Portland Streetcars Boost Real Estate Development

“What’s old is new again,” could be the unofficial motto of the Portland Streetcar. While nostalgia plays a big role in its appeal, the bottom line for busy Portlanders is that the streetcar will get you where you need to go. The proof is in the pudding: The Real estate development along those Portland routes has gotten a big boost from streetcars over the past 15 years.

According to new research funded by the Portland Streetcar group, the entire corridor has brought in $4.5 billion in new real estate development since construction began in 1998. The comprehensive study was released in July 2015, and looks specifically at this unique form of transportation and how it has affected the real estate market in Portland.

According to the website PDXhistory.com, streetcars and trolleys were revolutionary in Portland’s early days, offering a whole new level of mobility to residents, visitors and merchants and literally elevating everyone out of the mud that plagued the streets. 1872 was the year of the first horse-drawn streetcar, followed quickly by steam trains and then electric trolleys before the turn of the century.

You could say that the Portland streetcar has always spurred real estate development and new housing. Pdxhistory.com explains:

“As the streetcar expanded to other areas, residents of the quickly growing timber town could live out of the center of the town. Real estate developers created the communities of Council Crest, Hawthorne, Irvington and Mount Tabor, as well as others, as the streetcar lines lured people away from the central city to live in the suburbs.”

At one time, Portland had the most extensive streetcar system on the West Coast, with dozens of lines running throughout the quickly growing metro area. The dawn of the automobile age in the 1950s eventually caused the streetcar system to be abandoned and the tracks paved over.
Those were the dark years for public transit. Fortunately, Portland made a strong comeback and today has one of the best public transit systems in the country, including streetcars, busses, and the MAX light rail system.

The Portland Streetcar system continues to grow. What started in 1998 as a loop that brought riders from Portland State University to the Pearl District, expanded to reach the South Waterfront district by 2007. From there, a new line was built on the other side of the river, running from the Lloyd Center to OMSI, and connecting with the South Waterfront again. That last leg is made over Tilikum Crossing, the first bridge in the country to be built exclusively for public transit and pedestrian/cyclist use, but not private motor vehicles. As of August 2015, it’s now possible to loop the entire heart of Portland via streetcar!

The implications for the Portland real estate market are huge, especially looking at the impact that the streetcar has already had for the city. The study commissioned by the Portland Streetcar group this summer found that since the beginning of the project, 7.7 million square feet of new commercial real estate 18,000 new residential units have been built within 1/4 mile of the streetcar lines. They estimate that 41% of this new residential construction can be credited to the Portland Streetcar’s presence in those areas.

If you’re looking for a real estate investment that will grow in value over time, Portland is a great place to come — public transit systems like the Streetcar lines not only make getting around easier, they also have a proven track record of boosting real estate market activity and growth.
Want to learn more? Contact your Portland Buyers’ Team today!